This week has seen the price of gold reach records highs, with it finally reaching $1,600 for a troy ounce. This is mostly likely due to growing fears of debt in both Europe and the US, with most people rushing to buy gold and other precious metals.

Not only did this occur in the metals financial market, but also saw other currency markets such as the Japanese Yen and Swiss Franc closing against the US dollar at a record peak. There has been a rush of investors in the European markets who are moving into the purchase of physical gold, and with the debt crisis moving across to Italy for the first time, this is mostly likely to continue in the near future.

On Friday, there were the most sales seen in the past year of gold coins at UBS in Zurich according to the bank’s strategist Edel Tully. She was reported to have said that the purchasing of the coins came from many different countries in Europe, with a fear that the trading industry of gold is becoming more prevalent. The fear is unlikely to disappear until Greece’s problems have abated and there is a clearer picture of the future for them.

The upturn in the market, which has actually been about 8% in the past couple of weeks, has potentially been helped by the fact that Washington has yet to make an agreement on how to get the country out of its debt by the beginning of August.

No only gold, but silver also rose at the beginning of the week, peaking at $40.15, which is the first time since May it has broken $40. This is an increase of nearly 20% over the previous two weeks. There is a belief that gold will continue to rise over the coming years, however, compared to 1980, with the allowance of inflation, it is still a long way off what it was, which would now be $2,400.
According to the strategist at the Bank of New York Mellon, Neil Mellor, the $1,600 milestone is just another level of which gold has hit since the turn of the century, and will continue to grow as long as there is nothing in the way of the doubting investors.

Price of Gold Reach Records High is a post from: Stock Market For Beginners

The three-month saga that is the Gulf oil spill isn’t as bad now, but it’s not close to being over. Once BP stopped the flow of oil into the Gulf, some investors showed a bit of optimism by buying shares of the company on both the FTSE and NYSE. However, it’s not all roses from here.

On Tuesday, shares of BP closed at 387.45 on the FTSE and 35.56 on the NYSE—both down very slightly, but still well off their 52-week highs of 658.20 and 62.38 respectively.

While the desire to get in at the bottom might be propelling some investors to buy shares of BP, there’s still a lot of trouble on the horizon and the company’s stock on both exchanges has the potential for more downside.

CNN Money reported today that the fines by  the U.S. government could be fairly steep. In fact, those fines alone could soak up all of the $20 billion fund BP had set aside for compensation to disaster victims. A Justice Department spokeswoman said that BP could be responsible for paying a fine of up to $4,300 per barrel of oil released into the Gulf.

Just how many barrels were leaked into the Gulf? Estimates have ranged around 60,000 barrels per day. Could it be much higher? One can’t take any comfort in that figure, because of how shaky these estimates have been. First it was 1,000, then 10,000 then 35,000 and finally 60,000. Could BP be fined on 100,000 barrels per day?

The political climate in the U.S. is one that demands the heaviest fine possible. The government is in a position where it must make a strong statement to the American people that BP will suffer. After all, many were calling for criminal prosecution of BP executives.

Today, U.S. President Barack Obama met with British Prime Minister David Cameron and BP was the hot topic. Cameron understands the anger of the BP incident and is working on smoothing relations.

And what about looming court cases? While BP has the $20 billion fund setup to compensate Gulf victims, it may need to raise more capital by the time all of this is over. Perhaps in a preemptive move, BP is selling some more assets. Reuters reported today that BP will raise about $1.7 billion by selling assets to Vietnam and Pakistan.

As of now, BP has spent close to $4 billion cleaning up the spill. Perhaps the most telling statement about upcoming BP financial issues is one from Obama’s administration, which said there isn’t a cap on BP’s liabilities.

While BP stock might seem tempting, seeing as it’s down heavily off its highs, buying the stock is speculative at best. Some analysts are getting gutsy by forecasting that BP’s decline is about over, while most others are advising to stay far away from the stock.

BP Problems Not Capped Yet is a post from: Stock Market For Beginners

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Share holders today dumped their shares after hearing Sainsburys are to call for more shares to be brought to market which will dilute the current value of their current share price, which caused a panic of share dumping.  Their share price went down 7% today sit 23½p to 308¼p.

Sainsbury will gain £445m for bringing out more shares in the hope to get more cash.  Analysts say the stocks value will go down around 3%.  Many investors are worried that Qatari shareholders will start to offload their stake causing a tidal wave effect.

Rival Morrisons fell 1p to 243¾p while market leader Tesco fell 7.6p to 354p.  Not a good day for food chains.

Sainsburys is todays biggest loser on london stock exchange is a post from: Stock Market For Beginners

Nationwide report that a 1.2% jump between April and May saw the annual decline reduce from 15% to 11.3%.  This annoucment rose UK house builder stocks higher on Friday.  Taylor Wimpey stocks went from a day low of 30p on friday to todays high of  35.45p after the news was released.  up 7.31% today so far as of 16:25.

Over the weekend the FT report that top london estate agents are seeing the return of Gazumping.  It seems that the amount of cash buyers is the highest the market has ever seen.  A report in the FT says that 45% of sales over £5m in London were cash buyers last month.  This has doubled since levels from 2006 and 2007.  The usual levels are a third compared to last months 45%.

It would look like that alot of the cash buyers are from overseas investors taking advantage of the low sterling rate.  The outlook is still bleak for first time buyers as it is still difficult to get a mortgage as individuals worry about their future employment status.

Some speculate that there is a lack of supply on the market.  But the FT says “stock levels may be falling not because demand is soaking up inventory quickly, but because so few homeowners want to put their property on the market.”

UK House Prices Rise In May Shooting Up House Builder Stocks is a post from: Stock Market For Beginners

A few days after British Airways annouced they have made a loss Virgin Atlantic have annouced they have doubled their annual profits.

Profits have soared from £34.8m to £68.4m despite the economy being in a recession and oil prices.

Virgin Atlantic part owned by Sir Richard Branson flew 5.8 million passengers over the period, helped by their premium service as a number of premium travlers enjoyed their service.  Where as British Airways reported a reduction in 13% of their premium service showing that Virgin Atlantic are the top performers in this sector.

With the high prices of fuel Virgin Atlantic reported they spent £1bn on fuel last year,  which at one point last year the price was $147 a barrel.  They profited from the rate of currency exchanges

Currently Virgin Atlantic employes 8,500 and has 38 Airplanes.  The staff will receive a 10% bonus from the companies profits.

Branson said: “To increase profits against a backdrop of such a severe recession is an excellent achievement by all of our staff.”

Virgin Atlantic Profit Rises Despite The Recession is a post from: Stock Market For Beginners

London Markets closed at 4365.29 up 19.82 points  Fresnillo (FRES) and Kazakhmys (KAZ) ending the week on a high.

This week has been very volatile with gains made during the week wiped out on thursday.

London FTSE Market Closes 19.82 Points Higher after a volatile week is a post from: Stock Market For Beginners